- Cardano founder Charles Hoskinson warned crypto companies to not merge with “volatile” banks
- He believes if treasuries can be digitized, central banks will become obsolete
- His statement received praise as a potential to advance the current banking system
As the crypto industry continues to mature, Charles Hoskinson, founder of Cardano, has called for it to distance itself from unstable banks. His tweet follows the closing of Signature Bank, which provided easy options for crypto firms to connect to traditional finance systems.
Hoskinson’s call has been met with support from those who believe the digital assets industry will eventually replace traditional banking services. He believes that if treasuries can be digitized, “it’s game over for banks.” Supporters of decentralized crypto “banks” have seen this call as a positive step towards creating an alternative to traditional banking services.
The industry must continue to work towards increasing decentralization to thrive and survive. The recent challenges faced by the crypto industry due to bank failures highlight how important it is that the industry takes steps toward self-sufficiency without relying on traditional financial institutions.
Signature Bank and SVB Shutdown Not Caused by Crypto: NYDFS
On March 14, the New York Department of Financial Services (NYDFS) refuted any claims that Signature Bank was shut down for crypto-related reasons. The move by NYDFS to take over the bank and pass it onto the Federal Deposit Insurance Corporation (FDIC) came amidst other similar actions taken by California regulators and Silvergate Bank’s announcement to liquidate their assets last week voluntarily.
Nevertheless, the NYDFS rejected any suggestions that this action was meant to serve as an “anti-crypto message” as several clients with cryptocurrency activities were associated with Signature Bank. They further clarified that this step had been taken to protect customers’ funds and interests, not discriminate against those involved in digital currencies or blockchain technologies.
After speculations from news outlets and anti-crypto individuals, the shutdown of both SVB and Signature was due to cryptocurrency. This allowed big industry players such as Hoskinson and Coinbase CEO Brian Armstrong to voice out against the integrity of central banks.
Cardano Progresses in 2023
Despite this recent setback, Charles Hoskinson has assured that Cardano’s long-term project remains promising.
Cardano has seen an impressive surge in Total Value Locked (TVL). According to data from Cardano, the TVL soared to 336.1 ADA or $110 million, marking a new all-time high.
Hoskinson recently announced that Cardano would have two stablecoins: USDA (backed by USD) and Djed (backed by Cardano’s innovative contract technology). This is a significant move for the project as it will expand its capabilities in terms of DeFi.
Furthermore, Cardano is set to release a layer two scalability called Hydra. This technology will improve Cardano’s oracles which fill in the blanks between on-chain and off-chain data, which is critical for businesses built on blockchain technology.
In addition to all these upgrades, Charles Hoskinson was rumored to acquire CNN and CoinDesk in January. On Twitter, he said, “I can’t confirm or deny.”
Overall, Cardano is still a promising project with lots of potentials. As technology continues to improve and expand, it will be interesting to see how it can shape the future of blockchain and finance.
